Synergistic model to boost business performance: a New Zealand case study

Abstract

PurposeThis study investigates whether there is an association between business symbiosis and the performance of micro, small and medium enterprises (MSMEs).Design/methodology/approachThe authors conducted 200 surveys, using ordered logistic regression to evaluate the results. Participants are MSME business owners in Cambridge, New Zealand.FindingsThe authors found that connections with banks and other businesses in the same and across different industries, positively associates with changes in MSME profitability. Additionally, operating a business as a franchisee under the regulations or headquarter issued rules is positively associated with change in net profit.Originality/valueWhile there are limitations with cross-sectional data, the study indicates a mechanism and frameworks for policy analysis when deciding on allocation of funds to particular networks.